REVISED
STATEMENT OF PURPOSE
RS31014 / H0428
This legislation adjusts the desired fund size multiplier from 1.3 to 1.2 to temper the increase in unemployment
insurance tax rates for calendar year 2024 (Idaho Code 72-1350(3)). Without adjusting the multiplier, a large tax
increase would normally occur after three years of frozen tax rates. Reducing the desired fund size multiplier
lowers future rates.
FISCAL NOTE
The legislation reduces the multiplier from 1.3 to 1.2, resulting in $44 million in net savings to employers in
the first year. By the end of five years the reduced multiplier would provide an estimated $117 million in tax
savings. The new multiplier of 1.2 will establish a target reserve balance equivalent to 14.4 months of benefit
payments at levels similar to the Great Recession.
Lowering the multiplier will have no impact on the Idaho State General Fund, any dedicated fund or federal
funds. The Department of Labor will incur a one-time cost of $72,000 for administration, including rate
re-programming, mailing supplies and postage. This will be covered within existing appropriation so no
additional spending authority is needed.
Contact:
Senator Jim Guthrie
(208) 332-1000
Representative Matthew Bundy
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN REVISED: 02/07/2024, 2:58 PM


Statutes affected:
Bill Text: 72-1350